R2012-42 AUTHORIZING RENEWAL OF CONTRACT

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r COUNCIL COMMUNICATION FORM PURCHASING & INTERNAL SERVICES MEMORANDUM #12-13 February 21, 2012 TO: Honorable Mayor McElroy and City Council FROM: Ryan P. McCrady, City Manager Ron Neufeld, Financial Management Director Deborah M. Perry, Purchasing Supervisora f SUBJECT: Renewal of Lime Sludge Removal SUMMARY RECOMMENDATION: Staff recommends renewing contract to Evergreen F.S., Inc. to furnish lime sludge removal for an additional 12 months. BACKGROUND: In March of 2007, City Council awarded a five year lime sludge removal contract to Evergreen F.S. The contract is scheduled to expire in March of 2012. Evergreen has agreed to renew the contract for an additional 12 months with all terms and conditions remaining the same. Water Production staff has been pleased with Evergreen's performance on this contract. They believe renewing the contract for an additional year is in the City's best interest. The lime sludge is a by-product of the lime softening process used at the City's South Water Treatment Plant. This contract allows for 100% of the by-product to be recycled for another beneficial purpose. The lime sludge is removed with a "Mud Cat" brand of dredge, which is floated on the sludge ponds. The dredge literally chews up the lime sludge and other sediments that are removed during the water treatment process. The sludge is then pumped into a mix tank, and from there loaded into semi-tanker trucks. The trucks then transport the product to farm fields where it is applied to the fields with big-tired spreaders. When applied to the fields, the sludge stabilizes the soil, adjusts pH level, and adds nutrients. Since the weather determines when the sludge can be field applied, the amount of time available for the whole process to be completed is relatively short, usually from September until early December. In addition, lime sludge must be removed so the City does not violate its National Pollutant Discharge Elimination System (NPDES) permit for the lime sludge ponds. The permit does not allow lime sludge to overflow from the ponds into the Sangamon River downstream of the Lake Decatur dam.